Commercial crude oil reserves in the United States rose by 16.3 million barrels last week, according to figures released Wednesday by the U.S. Energy Information Agency (EIA). This marks the eighth consecutive weekly increase, despite an overall decline in demand. The current level is now the highest since early June 2021.
A market surprise and falling prices
The market reacted badly to this unexpected announcement and prices fell after its publication. A barrel of U.S. West Texas Intermediate (WTI) for March delivery gave up 1.44% to $77.92 around 16:00 GMT.
Increased imports and slowing demand
Since mid-December, commercial inventories have increased by 53 million barrels thanks to a high level of net imports (difference between imports and exports) at 3 million barrels per day in the week ended February 10. Similarly, the refiner’s capacity has dropped to 86.5%, compared to 87.9% a week ago.
Finally, demand contracted by 6% over one week and is below its level at the same time in 2022.
Production remains stable
Production also remained stable at 12.3 million barrels per day while at the same time 26 million will be taken from the US Strategic Petroleum Reserve (SPR) in the coming weeks to comply with a law passed by the US Congress in 2015.
